Professional Practice Project 2022

University
Professional Practice
By
Your Name
Date
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Table of Contents
Executive Summary........................................................................................................ 3
Introduction.................................................................................................................. 3
Conventional Procurement Method................................................................................... 3
Traditional Method of Procurement............................................................................... 3
Characteristics........................................................................................................ 4
Advantages............................................................................................................. 5
Disadvantages......................................................................................................... 5
Benefits to stakeholders............................................................................................. 6
Problems to stakeholder............................................................................................ 6
Modern Procurement Methods......................................................................................... 6
Design and Build Method of Procurement........................................................................6
Characteristics........................................................................................................ 7
Advantages............................................................................................................. 7
Disadvantages......................................................................................................... 8
Benefits to stakeholders............................................................................................. 9
Problems to the stakeholder....................................................................................... 9
Management Procurement............................................................................................ 9
Characteristics...................................................................................................... 10
Advantages........................................................................................................... 10
Disadvantages....................................................................................................... 11
Benefits to stakeholders........................................................................................... 11
Problems to the stakeholder..................................................................................... 11
Comparison Chart for Different Procurement methods.......................................................12
Recommendations........................................................................................................ 12
Conclusion.................................................................................................................. 14
Disclaimer................................................................................................................... 14
References.................................................................................................................. 15
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Procurement Methods in Construction
Executive Summary
The construction industry utilizes different methods of procurement to ensure efficient planning,
budgeting and execution of a project. Conventional and Modern procurements are used. The
commonly used conventional method is the traditional method while the commonly used modern
methods are the design-build method and the management method. Any method involved in
procurement has its own characteristic, advantages, and disadvantages. Also, different
procurement methods impact the stakeholders in the construction industry differently.
Nevertheless, the choice of a procurement methods depends entirely on the choice of the client
and the prevailing conditions at the time of project actualization.
Introduction
Procurement is a very critical process in any construction industry. It is the determinant of how
smoothly and fast a project will be actualized (Suresh, Chan, and Mubarak, 2018). Moreover, a
procurement process determines the quality of the work done in construction and whether or not
it will meet the client’s expectations (Anthony, 2016). The focus of this paper is to present the
conventional and modern procurements methods used in the construction industry. It looks into
the characteristics, merits, and demerits of the procurement methods overly and to the
stakeholders in the construction industry.
Conventional Procurement Method
Traditional Method of Procurement
The traditional method of procurement is widely used in construction projects. In this method,
the client employs the services of an architect, a contractor and a consultant distinctly. The
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architect develops the design and provides all the specifications (Lim, 2016). The consultant is
hired to be in charge of the design and financial expenses while the contractor actualizes. The
contractors are hired through a bidding process whereby they submit their tender documents
containing the approximate price of the project. The contactor who bids with the lowest amount
is usually awarded the tender (Greenhalgh and Squires, 2011).
Figure 1: Traditional Method of Procurement
Characteristics
The traditional procurement method has the following characteristics.
 The owner of the project has complete authority over the design process through the
consultant (Jimoh, Oyewobi, and Aliu, 2016).
 The contractor receives takes responsibilities the facilitate the completion of the project
but does not take any design responsibilities.
 In traditional procurement method the design is usually completed before a contractor is
hired to actualize the project.
 The contract who bids with the lowest amount of money is usually awarded the tender,
although room for negotiation is often created for other bidders (March, 2017).
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